For a Camp Margaritaville franchise in South Dakota, what effect does a franchisee's signed statement, questionnaire, or acknowledgement have on waiving claims under state franchise law or disclaiming reliance on franchisor statements?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
SOUTH DAKOTA RIDER TO MARGARITAVILLE RV RESORTS, LLC FRANCHISE AGREEMENT
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, a South Dakota Rider to the Franchise Agreement specifies that no statement, questionnaire, or acknowledgement signed by a franchisee at the start of their franchise relationship can waive claims under South Dakota franchise law. This includes claims related to fraud in the inducement.
Additionally, these documents cannot disclaim reliance on statements made by Camp Margaritaville, its franchise sellers, or anyone acting on the company's behalf. This protection is designed to prevent franchisees from inadvertently giving up their legal rights through standard paperwork.
This provision in the South Dakota Rider supersedes any conflicting terms in the general Franchise Agreement or other related documents. This ensures that the franchisee's rights under South Dakota law are fully protected, regardless of what other agreements might state.